Core Insights - Modine reported revenue of $682.8 million for the quarter ended June 2025, reflecting a 3.2% increase year-over-year and a surprise of +4.87% over the Zacks Consensus Estimate of $651.12 million [1] - Earnings per share (EPS) for the quarter was $1.06, up from $1.04 in the same quarter last year, with an EPS surprise of +13.98% compared to the consensus estimate of $0.93 [1] Financial Performance Metrics - Net Sales for Climate Solutions reached $397.4 million, exceeding the average estimate of $384.4 million from three analysts [4] - Net Sales for Corporate and eliminations was reported at $-0.1 million, better than the average estimate of $-4.98 million [4] - Net Sales for Performance Technologies was $285.5 million, surpassing the average estimate of $273.68 million [4] - Adjusted EBITDA for Climate Solutions was $79.4 million, above the average estimate of $75.01 million [4] - Adjusted EBITDA for Corporate and eliminations was reported at $-15.5 million, compared to the average estimate of $-16.96 million [4] - Adjusted EBITDA for Performance Technologies was $37.5 million, slightly below the average estimate of $38.91 million [4] Stock Performance - Modine's shares have returned +14.2% over the past month, outperforming the Zacks S&P 500 composite's +3.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Viewpoint - Modine (MOD) reported quarterly earnings of $1.06 per share, exceeding the Zacks Consensus Estimate of $0.93 per share, and showing a year-over-year increase from $1.04 per share [1] Group 1: Earnings Performance - The earnings surprise for the recent quarter was +13.98%, and the company had a previous quarter surprise of +17.89% with actual earnings of $1.12 per share against an expectation of $0.95 [1][2] - Over the last four quarters, Modine has consistently surpassed consensus EPS estimates [2] Group 2: Revenue Performance - Modine's revenues for the quarter ended June 2025 were $682.8 million, surpassing the Zacks Consensus Estimate by 4.87% and showing an increase from $661.5 million year-over-year [2] - The company has also topped consensus revenue estimates in each of the last four quarters [2] Group 3: Stock Performance and Outlook - Modine shares have declined approximately 3.4% since the beginning of the year, contrasting with the S&P 500's gain of 8.3% [3] - The future performance of Modine's stock will largely depend on management's commentary during the earnings call and the sustainability of the stock's immediate price movement [3][4] Group 4: Earnings Estimates and Industry Outlook - The current consensus EPS estimate for the upcoming quarter is $1.10 on revenues of $680.23 million, and for the current fiscal year, it is $4.52 on revenues of $2.76 billion [7] - The Automotive - Original Equipment industry, to which Modine belongs, is currently ranked in the top 30% of over 250 Zacks industries, indicating a favorable outlook [8]

[Modine Q1 Fiscal 2026 Earnings Release](index=1&type=section&id=Modine%20Reports%20First%20Quarter%20Fiscal%202026%20Results) [Financial Highlights and Outlook](index=1&type=section&id=First%20Quarter%20Highlights%20%26%20Fiscal%202026%20Outlook) Modine's Q1 net sales rose 3% to $682.8 million, driven by Climate Solutions, leading to raised FY2026 guidance for 10-15% net sales growth and $440-$470 million Adjusted EBITDA Q1 Fiscal 2026 Key Performance Indicators | Metric | Q1 FY2026 | Change vs. Q1 FY2025 | | :--- | :--- | :--- | | Net Sales | $682.8 million | +3% | | Net Earnings | $51.7 million | +8% | | Adjusted EBITDA | $101.4 million | +0.5% | | Diluted EPS | $0.95 | +8% | | Adjusted EPS | $1.06 | +2% | Revised Fiscal 2026 Full-Year Outlook | Metric | Current Outlook | | :--- | :--- | | Net Sales Growth | 10% to 15% | | Adjusted EBITDA | $440 million to $470 million | - The company is raising its fiscal year outlook due to the impact of **recent acquisitions** in Climate Solutions and **increased demand from data center customers**[1](index=1&type=chunk)[11](index=11&type=chunk) - A planned North American manufacturing capacity expansion for data center products is expected to positively impact H2 FY2026 and provides a path to approach **$2 billion** in data center revenues by fiscal 2028[11](index=11&type=chunk) [Consolidated Financial Performance](index=1&type=section&id=First%20Quarter%20Financial%20Results) Q1 FY2026 net sales grew 3% to $682.8 million, with gross profit up 2% to $165.4 million, while gross margin contracted 40 bps to 24.2% due to Performance Technologies Consolidated Income Statement Highlights (Q1 FY2026 vs Q1 FY2025) | Metric (in millions) | Q1 FY2026 | Q1 FY2025 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $682.8 | $661.5 | +3% | | Gross Profit | $165.4 | $162.6 | +2% | | Gross Margin | 24.2% | 24.6% | -40 bps | | SG&A Expenses | $84.9 | $82.8 | +2.5% | | Operating Income | $75.7 | $74.4 | +2% | | Net Earnings | $51.7 | $47.8 | +8% | - Sales growth was driven by the **Climate Solutions segment**, which was partially offset by lower sales in the **Performance Technologies segment** due to vehicular market weakness and product line exits[3](index=3&type=chunk) - The increase in SG&A was primarily due to higher spending to support growth and acquisitions in **Climate Solutions**[4](index=4&type=chunk) - The company recorded **$4.8 million** in restructuring expenses, mainly for severance related to headcount reductions in the **Performance Technologies segment**[5](index=5&type=chunk) [Segment Performance](index=3&type=section&id=First%20Quarter%20Segment%20Review) Segment performance diverged, with Climate Solutions sales up 11% to $397.4 million, while Performance Technologies sales decreased 8% to $285.5 million due to market weakness [Climate Solutions](index=3&type=section&id=Climate%20Solutions) Climate Solutions sales grew 11% to $397.4 million, driven by data center and HVAC products, with gross margin improving to 28.4% and operating income rising 12% to $66.9 million Climate Solutions Performance (Q1 FY2026 vs Q1 FY2025) | Metric (in millions) | Q1 FY2026 | Q1 FY2025 | Change | | :--- | :--- | :--- | :--- | | Sales | $397.4 | $357.3 | +11% | | Gross Margin | 28.4% | 28.2% | +20 bps | | Operating Income | $66.9 | $59.8 | +12% | | Adjusted EBITDA | $79.4 | $71.9 | +10% | - Organic sales growth for the segment was **7%**[32](index=32&type=chunk) - Sales increase was driven by data center and HVAC technologies products, with **$10 million** in incremental sales from acquired businesses[13](index=13&type=chunk) [Performance Technologies](index=3&type=section&id=Performance%20Technologies) Performance Technologies sales declined 8% to $285.5 million due to market weakness and product exits, leading to a 240 bps gross margin contraction to 18.2% and a 16% drop in operating income Performance Technologies Performance (Q1 FY2026 vs Q1 FY2025) | Metric (in millions) | Q1 FY2026 | Q1 FY2025 | Change | | :--- | :--- | :--- | :--- | | Sales | $285.5 | $309.0 | -8% | | Gross Margin | 18.2% | 20.6% | -240 bps | | Operating Income | $26.5 | $31.5 | -16% | | Adjusted EBITDA | $37.5 | $43.7 | -14% | - The sales decrease was primarily due to market-related declines in heavy-duty equipment and on-highway applications, as well as strategic product line exits[13](index=13&type=chunk) - Gross margin decline was driven by lower sales volume and higher material costs, which were partially offset by improved operating efficiencies[13](index=13&type=chunk) [Balance Sheet and Liquidity](index=3&type=section&id=Balance%20Sheet%20%26%20Liquidity) Net debt increased to $402.6 million as of June 30, 2025, driven by acquisitions, while net cash from operating activities and free cash flow decreased due to increased working capital Debt and Liquidity Summary | Metric (in millions) | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | Total Debt | $527.1 | $350.8 | | Cash and Cash Equivalents | $124.5 | $71.6 | | Net Debt | $402.6 | $279.2 | Cash Flow Summary (Three months ended June 30) | Metric (in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $27.7 | $40.5 | | Free Cash Flow | $0.2 | $13.7 | - The increase in net debt resulted from borrowings to fund acquisitions[10](index=10&type=chunk) - The decrease in free cash flow was primarily due to an increase in working capital, related to higher inventory balances in Climate Solutions[9](index=9&type=chunk) [Non-GAAP Financial Disclosures](index=5&type=section&id=Non-GAAP%20Financial%20Disclosures) The report utilizes non-GAAP measures such as Adjusted EBITDA, Adjusted EPS, Net Debt, Free Cash Flow, and Organic Sales Growth to evaluate financial performance and liquidity, with detailed definitions and reconciliations provided - Key non-GAAP measures used by management for performance evaluation include: - **Adjusted EBITDA:** Net earnings excluding interest, taxes, D&A, restructuring, acquisition costs, and other charges - **Adjusted EPS:** Diluted EPS excluding restructuring, acquisition costs, and certain other charges - **Net Debt:** Total debt less cash and cash equivalents - **Free Cash Flow:** Net cash from operating activities less capital expenditures - **Organic Sales:** Net sales excluding the impact of acquisitions and foreign currency fluctuations[16](index=16&type=chunk)[18](index=18&type=chunk)[19](index=19&type=chunk)[20](index=20&type=chunk)[21](index=21&type=chunk)[22](index=22&type=chunk) [Financial Statements](index=8&type=section&id=Financial%20Statements) This section presents detailed, unaudited financial statements for Q1 FY2026, including Consolidated Statements of Operations, Balance Sheets, Cash Flows, and reconciliations of GAAP to non-GAAP measures [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20statements%20of%20operations%20(unaudited)) The Consolidated Statements of Operations show a 3% increase in net sales to $682.8 million and an 8% increase in net earnings to $51.2 million for Q1 FY2026 Consolidated statements of operations (unaudited) (In millions, except per share amounts) | | Three months ended June 30, | | :--- | :--- | :--- | | | **2025** | **2024** | | Net sales | $682.8 | $661.5 | | Cost of sales | $517.4 | $498.9 | | **Gross profit** | **$165.4** | **$162.6** | | Selling, general & administrative expenses | $84.9 | $82.8 | | Restructuring expenses | $4.8 | $5.4 | | **Operating income** | **$75.7** | **$74.4** | | Interest expense | ($5.8) | ($7.5) | | Other expense – net | ($4.2) | ($0.3) | | **Earnings before income taxes** | **$65.7** | **$66.6** | | Provision for income taxes | ($14.0) | ($18.8) | | **Net earnings** | **$51.7** | **$47.8** | | Net earnings attributable to Modine | $51.2 | $47.3 | | **Net earnings per share – diluted** | **$0.95** | **$0.88** | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20consolidated%20balance%20sheets%20(unaudited)) The balance sheet as of June 30, 2025, shows total assets of $2,228.5 million, an increase driven by inventories, intangible assets, and goodwill, largely financed by increased long-term debt Condensed consolidated balance sheets (unaudited) (In millions) | | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | **Total current assets** | **$1,155.4** | **$961.2** | | Property, plant and equipment – net | $425.9 | $390.5 | | Intangible assets – net | $198.8 | $146.7 | | Goodwill | $268.2 | $233.9 | | **Total assets** | **$2,228.5** | **$1,917.6** | | **Total current liabilities** | **$561.9** | **$541.0** | | Long-term debt | $482.1 | $296.7 | | **Total liabilities** | **$1,209.8** | **$999.4** | | **Total equity** | **$1,018.7** | **$918.2** | | **Total liabilities & equity** | **$2,228.5** | **$1,917.6** | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20consolidated%20statements%20of%20cash%20flows%20(unaudited)) For Q1 FY2026, net cash from operating activities was $27.7 million, with $144.0 million used in investing activities and $166.9 million generated from financing, resulting in a $52.8 million net cash increase Condensed consolidated statements of cash flows (unaudited) (In millions) | Three months ended June 30, | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $27.7 | $40.5 | | Net cash used for investing activities | ($144.0) | ($26.5) | | Net cash provided by financing activities | $166.9 | $0.0 | | Net increase in cash | $52.8 | $12.9 | [Reconciliation of GAAP to Non-GAAP Measures](index=11&type=section&id=Adjusted%20financial%20results%20(unaudited)) This section provides detailed reconciliations for non-GAAP measures, showing how Q1 FY2026 Net Earnings of $51.7 million reconcile to Adjusted EBITDA of $101.4 million, and diluted EPS of $0.95 to Adjusted EPS of $1.06 Reconciliation of Net Earnings to Adjusted EBITDA (in millions) | Three months ended June 30, | 2025 | 2024 | | :--- | :--- | :--- | | Net earnings | $51.7 | $47.8 | | Interest expense | $5.8 | $7.5 | | Provision for income taxes | $14.0 | $18.8 | | Depreciation and amortization | $19.0 | $19.1 | | Other expense – net | $4.2 | $0.3 | | Restructuring expenses | $4.8 | $5.4 | | Acquisition and integration costs | $1.9 | $1.9 | | **Adjusted EBITDA** | **$101.4** | **$100.9** | Reconciliation of Diluted EPS to Adjusted EPS | Three months ended June 30, | 2025 | 2024 | | :--- | :--- | :--- | | Net earnings per share – diluted | $0.95 | $0.88 | | Restructuring expenses | $0.08 | $0.09 | | Acquisition and integration costs | $0.03 | $0.07 | | **Adjusted earnings per share** | **$1.06** | **$1.04** |

Core Insights - Modine has raised its revenue and earnings outlook for fiscal 2026, driven by improved data center sales and recent acquisitions [13][2][1] Financial Performance - Net sales for the quarter ended June 30, 2025, increased by 3% to $682.8 million, compared to $661.5 million in the prior year [3][11] - Net earnings rose by 8% to $51.7 million, up from $47.8 million in the previous year [5][11] - Adjusted EBITDA increased slightly to $101.4 million, compared to $100.9 million in the prior year [5][11] - Earnings per share increased by 8% to $0.95, compared to $0.88 in the prior year [6][11] Segment Performance - The Climate Solutions segment reported sales of $397.4 million, an 11% increase from $357.3 million a year ago, driven by higher sales of data center and HVAC technologies products [12][11] - The Performance Technologies segment saw a decline in sales to $285.5 million, down 8% from $309.0 million, primarily due to market-related declines [12][11] Cost and Expenses - Gross profit increased by 2% to $165.4 million, while gross margin decreased by 40 basis points to 24.2% [4][11] - Selling, general, and administrative expenses rose by $2.1 million to $84.9 million, mainly due to increased spending for growth and acquisitions [4][11] Balance Sheet and Liquidity - As of June 30, 2025, total debt was $527.1 million, with cash and cash equivalents totaling $124.5 million, resulting in net debt of $402.6 million [9][11] - Net cash provided by operating activities decreased to $27.7 million, down $12.8 million from the prior year [8][11] Outlook - Modine anticipates net sales growth of 10% to 15% and adjusted EBITDA in the range of $440 million to $470 million for fiscal 2026 [13][11]

Core Insights - Modine Manufacturing Company (MOD) is expected to report first-quarter fiscal 2026 results on July 30, with earnings per share (EPS) estimated at 93 cents and revenues at $651.12 million, reflecting a 10.58% decline in EPS year-over-year [1][9] - The consensus estimate for quarterly revenues indicates a year-over-year decline of 1.57% [2] Financial Performance - In the fourth quarter of fiscal 2025, MOD reported adjusted EPS of $1.12, exceeding the Zacks Consensus Estimate of 95 cents, and net sales of $647 million, surpassing the estimate of $625 million [2] - The company has consistently beaten earnings estimates in the past four quarters, with an average surprise of 14.90% [2] Revenue Projections - For fiscal 2026, MOD anticipates net revenues to increase by 2-10% year-over-year, with the Climate Solutions segment projected to grow by 12-20%, driven by strong demand in data centers and commercial indoor air quality products [3] - The company expects revenue growth of over 30% year-over-year specifically for data centers [3] EBITDA Expectations - Adjusted EBITDA for fiscal 2026 is expected to range between $420 million and $450 million, compared to $392.1 million in fiscal 2025, indicating a positive outlook for the company's performance [4] Segment Performance - Performance Technologies sales are projected to decline by 2% to 12% year-over-year due to ongoing market weaknesses and trade conflicts, which may offset overall top-line growth in the first quarter [5] - SG&A expenses as a percentage of sales increased to 12.8% in fiscal 2025 from 11.3% in fiscal 2024, and are expected to remain elevated, potentially impacting margin performance in the upcoming quarter [6] Earnings Prediction - The current Earnings ESP for MOD is -4.30%, indicating that the model does not predict an earnings beat for the upcoming quarter [7][8]

Core Insights - Modine announced a multimillion-dollar investment to expand U.S. manufacturing capacity for Airedale by Modine™ data center cooling products in response to unprecedented demand from U.S. hyperscale and colocation data center customers [1][2] - The investment aims to enhance manufacturing and testing capabilities, create new jobs, and support the redeployment and retraining of existing employees [2][3] - Modine's total data centers revenue is projected to approach $2 billion by Fiscal 2028, driven by significant growth in the U.S. digital infrastructure market [2][4] Investment Details - The company plans to invest $100 million over the next 12-18 months to expand manufacturing at four sites, including a new facility in Dallas, TX, and expansions in Grenada, MS [2][3] - Existing Performance Technologies' sites in Franklin, WI, and Jefferson City, MO, are also being considered for repurposing to support this growth [2] Product and Market Strategy - Modine is focusing on delivering integrated, modular, and scalable cooling solutions to meet the needs of hyperscale and colocation data center customers [3][4] - The company is developing a modular data center platform tailored for key global customers to address the increasing demand for rapid deployment and scalable infrastructure [3] Company Background - Modine has over 100 years of experience in thermal management technology, with a commitment to engineering solutions that improve air quality and reduce energy consumption [5] - The company operates globally, with a workforce of more than 11,000 employees across North America, South America, Europe, and Asia [5]

Core Insights - Modine has published its 2025 Sustainability Report and announced 2030 sustainability targets, focusing on emission reduction and resource conservation [1][2] Group 1: Sustainability Targets - The company aims for a 30% reduction in absolute Scope 1 and Scope 2 emissions from operations by 2030, using 2018 as the baseline [2] - This target supports customer decarbonization goals and reflects Modine's commitment to sustainable value creation [2] Group 2: Achievements and Metrics - The 2025 Sustainability Report includes enhanced metrics and key performance indicators (KPIs), showcasing significant achievements such as improved safety performance and reductions in emissions, energy intensity, waste, and water usage [3] - The report marks the first time Modine has reported select categories of Scope 3 emissions, indicating a broader commitment to climate and sustainability strategies [4] Group 3: Leadership and Collaboration - Modine's leadership emphasizes the importance of teamwork in achieving sustainability goals, highlighting collaborative efforts among global employees and partners [5] - The company continues to evolve its portfolio of thermal management technologies to support a cleaner and healthier world [6]

Company Overview - Modine is expected to report quarterly earnings of $0.95 per share for the quarter ended June 2025, reflecting a year-over-year decline of 8.7% [3][19] - Revenues are anticipated to be $651.12 million, down 1.6% from the same quarter last year [3][19] Earnings Estimates and Revisions - The consensus EPS estimate has been revised down by 1.57% over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][19] - Modine currently has an Earnings ESP of -5.06%, suggesting that the Most Accurate Estimate is lower than the Zacks Consensus Estimate [12][19] Historical Performance - Modine has beaten consensus EPS estimates in each of the last four quarters, with a notable surprise of +17.89% in the last reported quarter [13][14] Market Expectations - The upcoming earnings report on July 30 could lead to stock price movements depending on whether the actual results exceed or fall short of expectations [2][20] - Despite the historical performance, the current combination of a negative Earnings ESP and a Zacks Rank of 3 (Hold) makes it challenging to predict a beat on the consensus EPS estimate [12][20]

Core Insights - Modine has appointed Alan Lowe to its Board of Directors effective July 18, 2025, bringing extensive experience in technology and manufacturing sectors [1][4] Company Overview - Modine is a diversified global leader in thermal management technology and solutions, with over 100 years of experience in addressing thermal management challenges for mission-critical applications [5] - The company operates globally with more than 11,000 employees and focuses on improving air quality, reducing energy and water consumption, and lowering harmful emissions [5] Executive Background - Alan Lowe previously served as President and CEO of Lumentum Holdings Inc. from July 2015 to February 2025, and held various senior roles at Viavi Solutions Inc. and Asyst Technologies, Inc. [2] - Since November 2024, he has also been a member of the Board of Directors of Qorvo, Inc., which specializes in radio frequency and power solutions [3] Board Contributions - Alan Lowe will serve on the Audit and Corporate Governance committees and will stand for election at Modine's 2026 annual meeting of shareholders [4]

Core Viewpoint - Modine will host a conference call and webcast to discuss its first quarter financial results for the period ended June 30, 2025, scheduled for July 31, 2025 [1] Group 1: Financial Results Announcement - The conference call will feature Modine's President and CEO, Neil D. Brinker, and Executive Vice President and CFO, Michael B. (Mick) Lucareli, who will review the company's first quarter financial results [2] - Financial results are set to be released after market close on July 30, 2025 [1] Group 2: Accessing the Webcast - Investors can access the live webcast and presentation slides through Modine's investor section on their website, with a recommendation to log in at least 10 minutes prior to the event [3] - A replay of the slides and audio will be available on or after July 31, 2025, and an audio-only replay will be accessible until midnight on August 7, 2025 [3] Group 3: Company Overview - Modine has over 100 years of experience in thermal management technology, focusing on engineering solutions for cleaner and healthier environments [4] - The company employs more than 11,000 individuals globally and operates in North America, South America, Europe, and Asia [4]